Study on supply chain of national essential medicine in China

After the implementation of national essential drugs in China, the management of the pharmaceutical supply chain faces a dilemma. The effects of national essential drug system on pharmaceutical manufacturers, distributors, hospitals and consumers were stated in this paper. In addition, the obstacles of the supply chain of national essential medicine were analyzed. Finally, the proposals for the supply chain of Chinese essential medicine were given. The essential medicines supply system should be diversified. State-owned large pharmaceutical companies and private enterprises are responsible to reduce prices in the medicine supplying market. The medium and small pharmaceutical companies should give up some common brands, but concentrate on the production of specialty products. The distribution industry should also be public-private partnerships, to comply with competition rules. The reform in public hospital should accelerate the pace from personnel system, medical service prices, the establishment of compensation mechanism of zero circulating interest. National sectors related with the pharmaceutical circulation should balance the interests of pharmaceutical supply chain, only by which could from the source to ensure the smooth advance of essential medicines policy.